Hilton Head Real Estate Blog

Take advantage of the incredible bargains, put them in your IRA and let them grow. There are huge tax advantages to implement this plan. Consult you CPA for additional details. 

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Here are some things you can do. Your IRA can be used to buy and sell all types of real estate including raw land, rental properties, condo’s, fixer uppers, commercial properties, etc.

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(1) You can rent the property but your rental income goes back into the IRA.  

(2) All operating and rental expenses must flow in and out of your IRA

(3) You can even buy a partial interest in a property if your IRA doesn't have enough money to purchase 100% of it.

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Here are a few things you cannot do.

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(1) Your IRA cannot buy a property that you, your spouse, or certain family members already own.

(2) Personal use is off limits. This includes all family members.

(3) Your IRA cannot lease the property to your business. Your business cannot use or occupy any part of the property.

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The biggest advantage to this. Is the government puts a limit on how much you can contribute to your account each year. But there’s no limit on how much the account can earn!